The most important reason for conversion of a company into an LLP is on the tax front. Currently, the Income-tax Act, 1961, provides for payment of minimum alternate tax (MAT) as also for payment of dividend distribution tax (DDT) by companies. An LLP, which is not a company, should not be liable to pay MAT or DDT.
Unlike private limited companies (shareholders limited to 50), an LLP can have unlimited number of partners.
There is no need of compliances related to meetings and maintenance of huge statutory records.
All the assets and liabilities of the Company immediately before the conversion become the assets and liabilities of the LLP.
All movable and immovable properties of the company automatically vest in the LLP. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
No Capital Gains tax shall be charged on transfer of property from Company to LLP.
The goodwill of the Company and its brand value is kept intact and continues to enjoy the previous success story with legal recognition.
The accumulated loss and unabsorbed depreciation of Company is deemed to be loss/ depreciation of the successor LLP for the previous year in which conversion was effected. Thus such loss can be carried for further eight years in the hands of the successor LLP.
|1||DPIN (Designated Partner Identification Number)
|2||Application for Name Availability
|3||Documents required for incorporation of an LLP
In 20 days sitting at your home@ Rs. 3,999